Have a look at the weekly chart. The market has been moving up since March 2009.
It is facing resistance at the 8500-9000 level.
It had also faced resistance at these levels between September 2008 to December 2008, when it just remain stuck in a range.
If it retraces downwards, it can find support at 50 percent retracement levels at 7700.
The stochastics are pointing downwards indicating bearish days in the coming weeks.
Let us look at the daily charts to study in detail.
In the daily charts, you notice a Head and Shoulder pattern, which is bearish. The neckline is around 8200.
The 50 percent retracement is 7700 and the 62 percent retracement is 7410.
Also, you see prior swing lows at these levels.
The stochastics are pointing downwards indicating bearish days in the coming week.
Let us see what happens.
Tighten you stops for longs and look at possible shorts.
